The news is ever-changing and it seems our government is following suit. We recently reported on the mini-budget delivered by Kwasi Kwarteng in September. Now we’re in October and Kwasi Kwarteng is no longer in his role and Jeremy Hunt has taken over as Chancellor of the Exchequer.
Mr. Hunt who took up his new role on Friday 14th October announced in an emergency statement that he would be reversing almost all of the tax cuts including the 1p income tax cut that was laid out in his predecessor’s mini-budget just a few weeks ago.
Jeremy Hunt said:
“The government has today decided to make further changes to the mini-budget, and to reduce unhelpful speculation about what they are, we’ve decided to announce these ahead of the medium-term fiscal plan, which happens in two weeks,”
The changes include:
- No cuts to dividend tax rates
- Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
- No new VAT-free shopping scheme for overseas visitors to the UK
- No freeze on alcohol duty rates
- The basic rate of income tax is to remain at 20%, not reduced to 19% from April 2023
- Energy price guarantee only until April 2023.
Uome is all about making self-employed life simple and the decision to U-turn on the IR35 rules is disappointing. We are not alone in our disappointment and want Uome users to know while we don’t have the power to change the government’s decision to repeal we will continue to support your businesses to get paid, connect and engage.
If you are seeking support on IR35 there are a number of professional membership organisations that can help, including IPSE (the Association of Independent Professionals and the Self-employed) the UK’s only not-for-profit membership organisation that often lobbies the government on such issues and has a dedicated IR35 hub.
We will keep you posted on any further announcements that impact our Uome users.